SEC Settles with Biotech Insider Trader. $70,827 disgorged.

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A biotech company employee was charged today with insider trading by the SEC. The SEC alleged that the employee had foreknowledge of the withdrawal of certain products from consideration by the US Food and Drug Administration. Securities and Exchange Commission v. Joseph Frank Vacante, No. 19-civ-1616 (S.D.N.Y. filed Feb. 21, 2019)

 

Joseph Frank Vacante, formerly employed at Trinity Biotech, PLC agreed to pay more than $140,000 to settle the SEC’s charges.

The SEC alleged that, on September 29, 2016, Vacante learned that the FDA had recommended that Trinity withdraw two biotech drugs which Vacante identified as vital to the company. The SEC Complaint was dated September 2019.  The complaint alleged Vacante twice communicated with his broker on the same day in efforts to sell Trinity American Depository Receipts (ADRs).

The SEC alleges that, by selling his ADRs before Trinity’s announcement, Vacante avoided $70,000 in losses after Vacante learned that Trinity was withdrawing two products from FDA consideration. Vacante sold before the price of the stock dropped 50% in October 2016.

Vacante has consented to a judgment  enjoining him from violating federal securities laws and ordered him to pay disgorgement of $70,827 plus interest of $6,247 and a civil penalty of $70,827.

Anthony M. Abraham, Esq., PC is experienced in broker fraud, churning and unauthorized trading claims. If you suspect that your account has been mismanaged, please call us Toll Free at 1-877-430-4877 for a Free Consultation or email us at Anthony@Abrahamattorneys.com.